Sarvodaya Development Finance Rs. 1 b IPO snapped up

Sarvodaya Development Finance’s Rs. 1 billion Initial Public Offering (IPO) was oversubscribed on its official opening day yesterday.

The IPO was for 22.7 million shares at Rs. 22 each as the first tranche and a further 22.7 million at the same price in the event of an oversubscription of the initial issue. 

Sarvodaya Development Finance said it received applications for over 45.45 million shares exceeding Rs. 1 billion and the issued closed at 4:30 p.m. yesterday. 

Via the IPO, the stock market had its first impact investing opportunity. SDF, the financial services arm of one of Sri Lanka’s oldest social movements, the Sarvodaya Shramadana Movement, offered 30% stake via the IPO. 

Sampath Bank and NDB Bank underwrote 50% of the initial tranche of the IPO. Financial advisors and managers to the issue was NDB Investment Bank.